Lloyds to review customers impacted by HBOS loan scandal

Reuters Staff

2 Min Read

LONDON, Feb 7 (Reuters) - Lloyds Banking Group said it is undertaking a review of customer cases impacted by two corrupt former bankers who helped orchestrate a 245 million pound ($302.92 million) fraud that siphoned off money from struggling businesses.

Last week six people, including the former HBOS bankers, were found guilty of a scam involving fraudulent loans and sent to prison for 47-and-a-half years.

The bank has been under pressure to pay compensation to victims of the fraud after it was accused of reacting too slowly to complaints.

Members of parliament wrote to Lloyds on Monday calling for them to properly redress hundreds of businesses who were duped by former HBOS manager Lynden Scourfield.

"Customer cases will be considered afresh in light of all relevant evidence including new evidence that emerged during the trial," Lloyds said in a statement. "The group deeply regrets that the criminal actions have caused such distress for a number of HBOS business customers."

HBOS, once Britain's biggest mortgage lender, was rescued in a state-engineered takeover in 2008 by Lloyds.